Consider two duopolists with differentiated products, who compete in

prices. Their demand and cost functions are given by q₁ = 2 - 2p₁ , q₂ = 2 2p₂ + p_{1 ,} C_i= q_i,where q_i and p_i are their quantities and

prices. i. Compare the simultaneous move Nash equilibrium solution with

the sequential one (leader/follower). ii. What happens if they both act as

leaders?